Fairholme sells stake in Regions
MIAMI INVESTOR Fairholme Capital Management LLC has sold a large share of stock in Alabama-based Regions Financial Corp., according to services that track investor holdings.
Regions is the No. 2 banker in Memphis and is selling Morgan Keegan & Co., an investment firm based in the city, to Raymond James Financial Inc.
Fairholme, among the largest shareholders in Regions until the fourth- quarter sell- off, had bought stakes in an array of financial services companies, betting on an upsurge in a restructured banking industry.
Fairholme also reduced stakes in Berkshire Hathaway and Citigroup, among other holdings, although the Regions investment appears to be one of its worst returns.
Over four years, Regions’ stock price has dropped to about $5.65 per share from about $20. Bad real estate loans continue to threaten profits along with legal costs related to Morgan Keegan’s failed mutual funds.
The Miami firm, which invests largely in distressed companies, was founded in 1997 by Bruce Berkowitz, a former managing director at Salomon Smith Barney.
Fairholme currently owns about 60 million Regions shares, down from about 124 million last year. Pennsylvaniabased mutual fund operator Vanguard Group Inc. emerged as Region’s largest stockholder, with about 64.5 million shares.
Florida-based Raymond James expects to close on the $930 million Morgan Keegan acquisition by April 2.
Regions is selling the Memphis firm to raise cash for repaying federal bailout loans.
Miss. casino to close
The Jubilee Casino in Greenville, Miss., will close in mid-april as its operations are consolidated with the Lighthouse Point Casino.
The Lighthouse will be renamed the Trop Casino Greenville and should be open by May. The consolidation will cost $6.8 million and create 120 construction jobs.
The Jubilee employs 117 workers; 120 work at Lighthouse. An unspecified number of Jubilee workers will be offered work at the new operation.
Designer to write exam
Jodi Davis, an interior designer and associate with Askew Nixon Ferguson Architects, will help write the national exam that certifies interior designers.
She has been appointed as a member of the 2012 NCIDQ Item-writing Task Force for the interior design examination administered throughout North America.
The National Council for Interior Design Qualification sets standards of competence for interior design/interior architecture professionals.
Davis, who received a bachelor of science in interior design from O’more College of Design, has worked in the interior design field for more than 10 years.
Done deal
Rent a Center has signed a lease for 3,000 square feet in Perimeter Point Business Park, 5055 Covington Way. The landlord is Perimeter Point East LLC. Hank Martin and Elliot Embry with NAI Saig Company brokered the deal.